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Role of Management Decision Variables in Determining Technology Progress and Technical Efficiency in Indian Electronic Industry

Majumdar, R and Bala Subrahmanya, MH (2009) Role of Management Decision Variables in Determining Technology Progress and Technical Efficiency in Indian Electronic Industry. In: Presented at the Fourth Annual International Conference on Public Policy and Management held at Indian Institute of Management Bangalore (IIMB), 9th to 12th August 2009, Bangalore.

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Abstract

This paper analyses the influence of management on Technical Efficiency Change (TEC) and Technological Progress (TP) in the communication equipment and consumer electronics sub-sectors of Indian hardware electronics industry. Each sub-sector comprises 13 sample firms for two time periods.The primary objective is to determine the relative contribution of TP and TEC to TFP Growth (TFPG) and to establish the influence of firm specific operational management decision variables on these two components. The study finds that both the sub-sectors have strived and achieved steady TP but not TEC in the period of economic liberalisation to cope with the intensifying competition. The management decisions with respect to asset and profit utilization, vertical integration, among others, improved TP and TE in the sub-sectors. However, R&D investments and technology imports proved costly for TFP indicating inadequate efforts and/or poor resource utilisation by the management. Management was found to be complacent in terms of improving or developing their own technology as indicated by their higher dependence on import of raw materials and no influence of R&D on TP.

Item Type: Conference Paper
Keywords: Total Factor Productivity Growth;Management Decision Variables;Stochastic Production Function;Electronics Hardware Industry;Economic Liberalisation
Department/Centre: Division of Mechanical Sciences > Civil Engineering
Date Deposited: 20 Dec 2011 04:55
Last Modified: 20 Dec 2011 04:55
URI: http://eprints.iisc.ernet.in/id/eprint/40051

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